Federal Advisor to Prime Minister on Textile, Dr Mirza Ikhtiar Baig is quite optimistic about bullish growth of textile industry in Pakistan, saying trade concession on 65 items from the EU, implementation of GSP Plus from the EU from January 01, 2014, Preferential Trade Agreement (PTA) with Turkey, signing on 2nd phase of Free Trade Agreement (FTA) with China and trade opportunities with India are a few factors playing due role in this regard.
He was talking to a select group of media on his visit to the city. Dr Baig has also been appointed Chairman of Pakistan Textile City Project by the Prime Minister recently. Dr Baig said Pakistan textile industry would get a benefit of $320 million with duty free trade facility from the EU for concession on 65 items. He said this facility would continue until December 31, 2013.
Regarding the GSP Plus status to Pakistan in the EU from January 2014 onwards, he said, the criteria has been revised and approved by the EU and all its exports would easily by accommodated under the facility from January 2014. It may be noted that Dr Baig has been main architect of the negotiations with the EU officials on GSP Plus facility for Pakistan.
He said a PTA with Turkey would be signed from early next year that would reduce the import duty on Pakistani products by 6.4 percent in Turkey. Pakistani products are attracting a duty of 24.5 percent at present in Turkey that would be slashed down to 18.10 percent after the PTA.
According to him, Pakistan textile industry is exporting over $600 million products to the EU presently. On the implementation of 2nd phase of FTA with China, Dr Baig said it would open Chinese market for Pakistani raw materials, as Chinese textile industry is phasing out of production of raw material as well as value added textile products due to 20 percent increase in wages.
Regarding trade with India, he said, duty on all Pakistani textile products, barring 100 items, would range in between 5 to 10 percent from April 2013 onwards that would open a new window of opportunity for Pakistan in Indian market. On MFN status to India, Dr Baig said Pakistan is offering this status to India as per commitment because it was a WTO condition to be fulfilled by every member state without objection.